Wyndham Hotels & Resorts Inc (WH)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,201,000	2,077,000	2,084,000	2,597,000	2,122,000
Total stockholders’ equity	US$ in thousands	746,000	962,000	1,089,000	963,000	1,212,000
Debt-to-capital ratio		0.75	0.68	0.66	0.73	0.64

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,201,000K ÷ ($2,201,000K + $746,000K)
= 0.75

The debt-to-capital ratio of Wyndham Hotels & Resorts Inc has shown some fluctuation over the past five years. The ratio increased from 0.64 in 2019 to 0.73 in 2020, indicating a higher proportion of debt relative to total capital. However, in the subsequent years, the ratio decreased to 0.66 in 2021 and further to 0.68 in 2022 before increasing to 0.75 in 2023.

A debt-to-capital ratio of 0.75 as of December 31, 2023, suggests that Wyndham Hotels & Resorts Inc relies on debt to finance a significant portion of its operations, with debt accounting for 75% of its total capital structure. This indicates a relatively high level of financial leverage, which could potentially increase the company's financial risk and interest payment obligations. Investors and creditors may closely monitor this trend to assess the company's ability to manage its debt levels effectively and maintain its financial stability.